Economics Design

Economics Design

By Lisa JY TanTechnology
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Economics Design episodes

  • EP 22: NFT, Bonding Curves and Harberger Taxes w Simon de la Rouviere

    Today, we have a guest on our episode, Simon de la Rouviere. He's known to start talking actively about bonding curves and it's making a huge impact to the future that we are building — #DeFi and crypto.

    Things we covered:

    • What are Harberger Taxes
    • Evolution of "Art is Always on Sale" V1 vs V2
    • Patronage as an asset class
    • Taxation and its impact on time horizon of holding assets
    • Relationship between art work and incentive to artist
    • Bonding curve with NFT via a price floor
    • Utility as a marginal incentive function in bonding curve
    • Various curve relationships between art and prices
    • Governance in NFT
    • Sustainable funding and efficient economy for artist
    • Combining DeFi with Bonding Curve for collectible art and virtual assets
    • Bonding curve uses in personal tokens
    • 2 advice to economic and system designers
    • Some links on the things we talked about:

      • Radical markets [Book] — https://amzn.to/31wRteX
      • Cadcad [Programming] — https://cadcad.org/
      • Wild Cards [Project] — https://devpost.com/software/ethcapetown_wildcards
      • This Artwork Is Always On Sale v2 — https://blog.simondlr.com/posts/this-artwork-is-always-on-sale-v2
      • Exploring Harberger Tax Rates in Virtual Collectibles & Patronage Markets — https://blog.simondlr.com/posts/exploring-harberger-tax-in-patronage-markets
      • Patronage As An Asset Class — https://blog.simondlr.com/posts/patronage-as-an-asset-class
      • Want more in-depth content? Join our Token Economics 201 course at www.education.economicsdesign.com!

        35 min
      • EP 21: What is Ampleforth? The Economics Design of AMPL Token [Case Study]

        What is Ampleforth? What is supply elasticity? Why do I have more tokens and suddenly less tokens? Where does Ampleforth come in, in the #DeFi space? How does Ampleforth work?! I don't understand Ampleforth!

        Fret not, let's start Season 2 with a deep dive and case study of Ampleforth, using the Economics Design framework for tokens.

        Things covered:

        • What is Ampleforth
        • Objective of Ampleforth
        • Token function
        • AMPL vs AAVE
        • AMPL vs COMP
        • AMPL vs USD
        • Economics design framework
        • Main USP of AMPL
        • What is Synthetic commodity money
        • Economics utility vs financial utility of AMPL
        • How AMPL works using example of hot and cold water
        • Monetary policy of Ampleforth
        • Graph analysis of AMPL
        • Valuation model for AMPL
        • Global trade impacts of AMPL
        • Distribution and allocation analysis of AMPL
        • Want more case studies like these? Subscribe to the premium version of the Patreon to unlock bi-weekly videos like these!

          1 hr 12 min
        • EP 20: Fundraising Mechanism with Bonding Curve (4 Use Cases)

          We've covered about bonding curves and the various incentive mechanisms that you can bake into the curve. This episode, we focus on using bonding curve as a way to fundraise for your project.

          Fundraising with tokens doesn't always mean that the token is a security. It can also be a utility. Here, we share 4 use-cases of how bonding curves are used in fundraising. Unlike autonomous market maker, there is no general model to follow.

          Quick navigation:

          • Bonding curve in AMM vs Fundraising: 00:56
          • Utility token vs Security token in fundraising: 04:06
          • Bonding curve application in fundraising: 04:52
          • Utility token: 09:34
          • Use-case 1, Giveth platform: 10:08
          • Use-case 2, Aragon platform: 14:17
          • Use-case 3, Molecule platform: 17:04
          • Security token: 27:57
          • Use-case 4, Fairmint platform: 28:15
          • Application: 32:41
          • Want more in-depth content? Join our Token Economics 201 course at www.education.economicsdesign.com! Use EARLYBIRD for a discount. 

            38 min
          • EP 19: Token Bonding Curve Algorithms for Autonomous Market Makers (DEX)

            The podcast version has no images to follow, unlike the YouTube channel. So it's easier! 🥳 

            In Part 1, we covered the basics of token bonding curves and understand how the shape of the curve affects the incentive mechanism.

            In this episode, we look into the application of token bonding curve in decentralised exchanges, DEX. Specifically, the use case of Autonomous Market Maker.

            We dive into 4 case studies: Bancor, Uniswap, Balancer, Curve

            The concept of token bonding curve in this 4 DEXes are the same. But the application of how the token bonding curve algorithm is built is different. So we uncover the 4 various algorithms used in the 4 different token bonding curves.

            Quick navigation:

            • Addressing 3 issues of previous episode: 00:26
            • Content we will be covering: 05:40
            • SUMS of token functions: 07:11
            • TBC in Stable tokens (pegged tokens): 09:17
            • TBC in Security and Utility tokens: 10:35
            • TBC in Autonomous Market Maker (AMM): 11:42
            • Why AMM in Decentralised Exchanges (DEX): 14:39
            • Which DEX that use AMM: 17:03
            • Math concepts of Bonding Curve in Autonomous Market Maker : 18:13
            • General bonding curve in AMM: 23:03
            • Case study 1, Bancor: 26:41
            • Case study 2, Uniswap: 34:25
            • Case study 3, Balancer: 40:18
            • Case study 4, Curve: 46:29
            • Application to projects: 50:07
            • Want more in-depth content? Join our Token Economics 201 course at www.education.economicsdesign.com! Introducing an early bird discount before I refilm all the episodes. You will still get access to the new episodes when it's done!

              Use code: Earlybird to get 25% discount.

              Parts will be available on Economics Design soon, when I launch the premium version on 31 Aug 2020.

              49 min
            • EP 18: Token Valuation with Token Bonding Curve

              ⚠️ PSA: This podcast episode is different from the YouTube channel. This removes the maths and graph, as it requires visualisation. Please check out the YouTube version for the graph. Otherwise, this episode is good enough to have you an in-depth explanation. ⚠️ 

              This is a 2-part series. Part 1 is on the economics and math of TBC and how the curve functions affect the incentive mechanism and what governance can we embed into the function. Part 2 will be on using these functions in projects, and taking a dive at a few projects.

              The episode is split into 2 because it gets quite heavy to digest all the information at once. So part 1 is the more math-y part, for you, as economics designers to grasp. And part 2 is the more application-y part, for you, as economics designers to know how to use it. After all, knowledge is only valuable when applied.

              Enjoy this first part. We understand token bonding curves, the benefits, where the value accrual is derived from and the various functions to consider.

              As much as I wish there is 1 perfect function, the functions really depend on the objective of your system and what it wants to incentive or govern. So choose wisely and have fun playing with graphs!

              • Application to token economics framework: 00:38
              • What is token bonding curve: 03:53
              • 4 properties of token bonding curve: 07:50
              • Use-cases: 11:38
              • Where does value come from: 13:37
              • Risks and ways to mitigate risks: 18:09
              • 4 math functions: 19:30
              • How to calculate total cost of tokens: 28:39
              • Want more in-depth content? Join our Token Economics 201 course at www.education.economicsdesign.com!

                31 min
              • EP 17: What makes good token economics, so investors will invest in it?

                In this episode, we interview Arthur Cheong, a DeFi investor. He's on Twitter as @Arthur_0x. From the perspective of an investor, who invests in tokens and token projects, we uncover what are the key aspects in token economics that he is concerned with. He also shared his top 3 projects with good token economics, opinions on yield farming and advise when designing tokens. 

                Spent 2 full days on the audio 🙃 This specific episode is best viewed on YouTube with subtitles. 

                Quick navigation:

                1. What makes a good token: 1:04
                2. 3 Projects with good token economics: 3:38
                3. Tokens as equity: 8:57
                4. Retalisation trend in DeFi: 11:47
                5. Factors for due diligence: 13:04
                6. Yield Farming: where is the economics value?: 16:05
                7. DeFi moving forward: 20:08
                8. 3 tips for token designers and economic designers: 27:14
                9. Want more in-depth content? Join our Token Economics 201 course at www.education.economicsdesign.com!

                  28 min
                10. EP 16: Tokens with Programmable Rules - Leveraged Tokens (E.g FTX)

                  Alright listen up guys. Now is the best time for #STONKS.

                  Memes aside, new token design are constantly entering the space. As DeFi continues to mature, I think we will start to see more sophisticated tokenised products with mathematical programmable rules embedded in them. How is now not the best time to be alive!

                  This episode, we dive into leveraged tokens. Using the token economics framework, we uncover the economics behind leveraged tokens, using #FTX as an example. Some simple math are involved. But don't worry. It's all fun and games.

                  Caution: this is a high risk product! Don't stonk your lives away ok.

                  Level up with #TokenEconomics course: https://education.economicsdesign.com/

                  44 min
                11. EP 15: Yield Farming Economics. Good bad ugly

                  Yield farming is all the type right now. We talked about the international gold (bitcoin) standard and this week, on farming. I guess history really repeats itself! This week, we share about 4 projects using yield farming, and breaking down the economics of yield farming and token design. Whilst yield farming is a great way for your project, consider the bad and ugly too, if you decide to implement it in your project.

                  Quick navigation:

                  • What is yield farming: 00:53
                  • Projects using yield farming mechanism: 03:21
                  • Yield farming hacks: 09:05
                  • Good, Bad and Ugly: 14:05
                  • Economics of yield farming: 20:40
                  • Applying to projects: 29:56
                  • Want more in-depth content? Join our Token Economics 201 course at www.education.economicsdesign.com!

                    32 min
                  • EP 14: Why Bitcoin will NEVER be an international currency

                    We've talked about how bitcoin accrues value. Now, here's why bitcoin will only remain as a P2P currency but never play a role in the international monetary order.

                    In this episode, we will understand the various international monetary order, the lessons learnt and what does it mean for an international monetary order moving forward. And in this process, figure out where #Bitcoin plays a role and how it is possible to have a small part of the international monetary order.

                    Quick navigation:

                    • Short answer in 30 seconds 1:20
                    • History of international monetary order 1:53
                    • Lessons learnt from it 26:43
                    • Bitcoin's possible role in the international monetary order 28:54
                    • Why Bitcoin will never be an international currency 36:25
                    • Want more in-depth content? Join our Token Economics 201 course at www.education.economicsdesign.com! Currently having a discount.

                      40 min
                    • EP 13: How Money has Value (3-step Process)

                      You've probably heard enough about the whole argument of "money used to be gold". In this episode, we will uncover the fundamentals of how money accrues value from 2 perspectives — metallism and chartalism.

                      Quick navigation:

                      • How money is created (Metallism vs Chartallism) 01:34
                      • 3-step process to legitimising money 10:20
                      • Application to cryptocurrency 12:30
                      • If you are keen to learn more, we are currently having a discount for the Token Economics Blueprint course! It's a 10 lesson session and you can choose which section you are interested in. Total lesson time: 15 hours.

                        Join our Token Economics 201 course at www.education.economicsdesign.com!

                        23 min

                      About Economics Design

                      From the publisher's feed

                      We talk about the design of economic systems. This could be video game simulated economy or real business world like frequent flyer points system or blockchain based token economy.